Correlation Between Wienerberger and Oesterr Post
Can any of the company-specific risk be diversified away by investing in both Wienerberger and Oesterr Post at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wienerberger and Oesterr Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wienerberger AG and Oesterr Post AG, you can compare the effects of market volatilities on Wienerberger and Oesterr Post and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wienerberger with a short position of Oesterr Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wienerberger and Oesterr Post.
Diversification Opportunities for Wienerberger and Oesterr Post
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wienerberger and Oesterr is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Wienerberger AG and Oesterr Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oesterr Post AG and Wienerberger is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wienerberger AG are associated (or correlated) with Oesterr Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oesterr Post AG has no effect on the direction of Wienerberger i.e., Wienerberger and Oesterr Post go up and down completely randomly.
Pair Corralation between Wienerberger and Oesterr Post
Assuming the 90 days trading horizon Wienerberger AG is expected to under-perform the Oesterr Post. In addition to that, Wienerberger is 2.55 times more volatile than Oesterr Post AG. It trades about -0.06 of its total potential returns per unit of risk. Oesterr Post AG is currently generating about 0.02 per unit of volatility. If you would invest 2,900 in Oesterr Post AG on August 27, 2024 and sell it today you would earn a total of 10.00 from holding Oesterr Post AG or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wienerberger AG vs. Oesterr Post AG
Performance |
| Timeline |
| Wienerberger AG |
| Oesterr Post AG |
Wienerberger and Oesterr Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wienerberger and Oesterr Post
The main advantage of trading using opposite Wienerberger and Oesterr Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wienerberger position performs unexpectedly, Oesterr Post can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oesterr Post will offset losses from the drop in Oesterr Post's long position.| Wienerberger vs. Voestalpine AG | Wienerberger vs. OMV Aktiengesellschaft | Wienerberger vs. VERBUND AG | Wienerberger vs. Andritz AG |
| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. UNIQA Insurance Group | Oesterr Post vs. VERBUND AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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